UPDATE 1-Canadian software maker Shopify valued at $1.27 bln at IPO price
(Adds analyst comment, details about company, IPO market)
By Neha Dimri
May 20 (Reuters) - Canadian e-commerce software maker Shopify Inc said its U.S. initial public offering was priced at $17 per share, valuing the company at about $1.27 billion.
The company's IPO of 7.7 million class A subordinate shares raised about $131 million, after it was priced above the top end of the expected range of $14-$16. The offering was earlier expected to be priced at $12-$14.
The company sold all the shares in the offering.
"Pricing reflects big enthusiasm for these type of deals. It's a unique company in a hot area with lots of growth," said Josef Schuster, founder of IPO investment firm IPOX Schuster LLC. "There's going to be a big pop coming tomorrow."
Ottawa-based Shopify, which is also expected to debut on the Toronto Stock Exchange on Thursday, makes software that helps small and medium-sized retailers to set up online storefronts. Shopify charges a monthly subscription fees of $29-$179.
The company has also created online stores for a variety of retailers ranging from tattoo companies to fashion boutiques and vintage book sellers.
Shopify said 162,261 merchants had subscribed to its platform from about 150 countries as of March 31. Continued...